Japan's Chubu Elec to pay $3.3 bln to JERA -Nikkei

Reuters Staff

2 Min Read

TOKYO, Feb 16 (Reuters) -

* Chubu Electric Power Co to pay around 350 billion yen ($3.29 billion) as a capital contribution to its JERA fuel joint venture with Tokyo Electric Power Co Holdings (Tepco), the Nikkei business daily said on Friday

* Chubu Electric and Tepco last year agreed to integrate their fossil fuel power plants under the 50-50 venture, marking the last stage of a three-step plan to form a form a company that will oversee 68 gigawatts of capacity and account for nearly half the country’s domestic power generation

* Because roughly two-thirds of domestic power plant capacity belongs to Tepco, Chubu Electric will make the cash payment to keep the equal relationship with Tepco to fill the difference in the plant asset value, the Nikkei said

* Chubu Electric and Tepco will formally decide the size of the capital contribution as early as this month, it said

* Chubu Electric will issue straight bonds to make part of the cash payment, it added

* Chubu spokesman told Reuters no decision has been made on any payment to JERA ($1 = 106.2400 yen) (Reporting by Osamu Tsukimori; editing by Richard Pullin)